{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Unfunded Swaps, Synthetic Replication, Counterparty Risk",
    "classification": "complex",
    "supporting_data": "The Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF uses unfunded swap agreements to achieve its investment objective, explicitly stated in the KIID and PRIIPs KID. The Fund holds a basket of equities that differ from the index and swaps the performance of these equities for the performance of the STOXX Europe 600 Optimised Basic Resources Index. This synthetic replication method introduces counterparty risk, as the Fund relies on swap counterparties to deliver index performance. The Fund does not use leverage or inverse strategies, and derivatives are used only as part of the synthetic replication, not for risk management, so 'derivatives' is false. The risk profile is high (risk category 6-7), reflecting the complexity and risks associated with swap usage and counterparty exposure. The ongoing charge is low (0.20%) with no swap fee, but the presence of swaps and synthetic replication is a key complexity driver. There are no capital protection features or structured products involved. The PRIIPs KID does not carry a specific comprehension warning but highlights the high risk and counterparty risk. The monthly factsheet confirms synthetic replication and swap usage, with no leverage or capital protection. Therefore, under MiFID II, the ETF is classified as complex due to its synthetic replication via unfunded swaps and associated counterparty risk, which may not be easily understood by retail investors."
}